Vt. gov. wants to end tax dispute with towns

Says TIF redevelopment law lacks clarity

Gov. Peter Shumlin with mayors, state legislators in downtown Winooski.

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Gov. Peter Shumlin with mayors, state legislators in downtown Winooski.

Gov. Peter Shumlin says he wants to forgive about $6 million that the state auditor last year said four Vermont cities and towns owe the state in connection with special tax districts designed to promote economic development.

Speaking at a news conference in Winooski on Wednesday, Shumlin said his administration will introduce legislation shortly that would clarify the rules governing so-called tax increment financing districts.

The municipalities -- Burlington, Winooski, Milton, and Newport -- disputed the finding by former auditor Tom Salmon that they misapplied the law and owe the state the money.

Only Newport has agreed to repay some of the money.

"Let's forgive and forget the past," Shumlin said with mayors, lawmakers and business leaders looking on.

At least seven Vermont communities now employ or will soon utilize the deferred tax provisions of the TIF -- which helps focus capital investment in targeted growth areas.

Shumlin said he wants to clarify the law to avoid any similar disputes in the future. He called the districts, known as TIFs, an important tool for revitalizing Vermont's downtowns.

"It doesn't do anyone any good to keep arguing over numbers that may not be accurate, and instead get the rules of the road clear and the enforcement mechanism clear going forward," said Administration Secretary Jeb Spaulding.